Managing Outsourcing: Controlling an Existing Vendor's Performance


2 Day Intensive Seminar Workshop


Once an organization has engaged an outsourcer to take over ongoing responsibility for its software, such arrangements invariably encounter difficulties. Complexity increases geometrically when the oursourcer is far away and has a radically different culture. Moreover, responsibility for managing the outsourcer frequently is placed on internal technical specialists who may have little preparation for their new role. This course helps the remaining internal people learn how to define and communicate assignments to outsourcers and then make sure the outsourcer delivers appropriately. Case exercises reinforce learning.

Those interested in learning to evaluate and contract effectively with an outsourcer also should take our related course Managing Software Acquisition and Outsourcing.


Participants will learn:


  * Rationale, economics, and formats of outsourcing.
  * Elements needed for managing the arrangement and why they so often are missing or inadequate.
  * Defining clearly, completely, and appropriately what the vendor should deliver.
  * Determining when alternatives would be more economical.
  * Issues of dealing long distance and with different cultures.
  * Managing the quality, schedule, and acceptability of outsourced software assignments.


WHO SHOULD ATTEND: This course has been designed for systems and business managers, project leaders, analysts/programmers who are or will become involved in managing ongoing software outsourcing arrangements.


 

THE CASE FOR OUTSOURCING

  • Rationale and varieties of formats
  • Real and false economies
  • Core competencies and risk reduction
  • How outsourcers cost less and still make a profit
  • Overview of outsourcer selection/contracting
  • Insourcing
 

ONGOING OUTSOURCING ARRANGEMENTS

  • What master agreements typically cover
  • Distinctive characteristics and service levels
  • Maintenance vs. development vs. support
  • Mutual commitments and expectations
  • Similarities/differences with in-house support
  • In-house roles and responsibilities
  • Common problems that must be managed
 

WORK ORDERS FOR SPECIFIC SERVICES

  • Work order specification format and contents
  • When outsourcer has staff on-site
  • When outsourcer staff are all off-site
  • Navigating outsourcer's communication lines
  • Your say in outsourcer staffing decisions
  • Outsourcer responses to work orders
  • Selective cost/benefit analysis
  • Negotiating out-of-scope services
  • Deciding which requests to schedule, defer, deny
  • They treat us the way we used to treat our users
 

MANAGING DELIVERY LONG DISTANCE

  • Who is responsible for project management
  • Setting a project plan
  • Monitoring milestones and checkpoints
  • Status reporting
  • Dealing with project slippage
  • Cultural issues and considerations
  • Preparing test plans
  • Reviewing outsourcer's testing results
  • Implementation planning and execution
  • Getting training and documentation
  • Technical testing once installed in-house
  • Acceptance testing
  • Getting problems resolved
 

DEFINING REQUIRED SOFTWARE

  • Internal request procedures
  • Logging and tracking
  • Investigating the request
  • Understanding the business need
  • Formulating a conceptual solution
  • Business requirements vs. system design
  • Defining acceptance criteria
 

MANAGING THE PROCESS

  • Monitoring outsourcing effectiveness
  • Negotiating new service level agreements
  • Evaluating alternatives to the arrangements
  • Continuously improving the process
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